42 U.S.C. § 291m–1: Loans for certain hospital…

Summary

The Secretary may make a loan to a grantee who got a grant under section 291n as it stood before August 18, 1964. The grant must be for building an experimental or demonstration hospital project to try new ways to cut hospital costs. If construction costs rose a lot through no fault of the grantee, and the grantee cannot get money from other public or private sources, the Secretary can lend up to 66⅔ percent of the increased costs as the Secretary finds. A borrower must apply in the form and with the information the Secretary requires. The loan will carry interest at 2½ percent a year on the unpaid balance. The Secretary will set a repayment period, but it cannot be longer than fifty years. Up to $3,500,000 is authorized to be used for these loans.

Title 42, §291m–1

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Other public or private sources unavailable for alleviation of hardship due to increased construction costs

In order to alleviate hardship on any recipient of a grant under section 291n of this title (as in effect immediately before August 18, 1964) for a project for the construction of an experimental or demonstration facility having as its specific purpose the application of novel means for the reduction of hospital costs with respect to which there has been a substantial increase in the cost of such construction (over the estimated cost of such project on the basis of which such grant was made) through no fault of such recipient, the Secretary is authorized to make a loan to such recipient not exceeding 66⅔ per centum of such increased costs, as determined by the Secretary, if the Secretary determines that such recipient is unable to obtain such an amount for such purpose from other public or private sources.

(b)Application; form; information

Any such loan shall be made only on the basis of an application submitted to the Secretary in such form and containing such information and assurances as he may prescribe.

(c)Interest; repayment period

Each such loan shall bear interest at the rate of 2½ per centum per annum on the unpaid balance thereof and shall be repayable over a period determined by the Secretary to be appropriate, but not exceeding fifty years.

(d)Authorization of appropriation

There are hereby authorized to be appropriated $3,500,000 to carry out the provisions of this section.

Editorial Notes

References in Text

section 291n of this title, referred to in subsec. (a), was repealed by Pub. L. 90–174, § 3(b)(1), Dec. 5, 1967, 81 Stat. 535.

§291m–1 Loans for Certain Hospital Experimentation Projects

Summary

Title 42, §291m–1

Notes & Related Subsidiaries

Editorial Notes

References in Text

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